Correlation Between Bitcoin and Virtus Global
Can any of the company-specific risk be diversified away by investing in both Bitcoin and Virtus Global at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Bitcoin and Virtus Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitcoin and Virtus Global Real, you can compare the effects of market volatilities on Bitcoin and Virtus Global and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Bitcoin with a short position of Virtus Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin and Virtus Global.
Diversification Opportunities for Bitcoin and Virtus Global
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bitcoin and Virtus is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin and Virtus Global Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus Global Real and Bitcoin is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Bitcoin are associated (or correlated) with Virtus Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus Global Real has no effect on the direction of Bitcoin i.e., Bitcoin and Virtus Global go up and down completely randomly.
Pair Corralation between Bitcoin and Virtus Global
Assuming the 90 days trading horizon Bitcoin is expected to generate 8.52 times more return on investment than Virtus Global. However, Bitcoin is 8.52 times more volatile than Virtus Global Real. It trades about 0.09 of its potential returns per unit of risk. Virtus Global Real is currently generating about 0.01 per unit of risk. If you would invest 2,312,970 in Bitcoin on October 20, 2024 and sell it today you would earn a total of 8,122,730 from holding Bitcoin or generate 351.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 60.2% |
| Values | Daily Returns |
Bitcoin vs. Virtus Global Real
Performance |
| Timeline |
| Bitcoin |
| Virtus Global Real |
Bitcoin and Virtus Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin and Virtus Global
The main advantage of trading using opposite Bitcoin and Virtus Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin position performs unexpectedly, Virtus Global can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Virtus Global will offset losses from the drop in Virtus Global's long position.The idea behind Bitcoin and Virtus Global Real pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Virtus Global vs. Virtus Global Real | Virtus Global vs. Virtus Global Real | Virtus Global vs. Virtus Global Real | Virtus Global vs. Virtus Kar Mid Cap |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Stocks Directory Find actively traded stocks across global markets |